Last updated: November 25, 2019



It is a common scene in business to subcontract production of some finished products via subcontractors. In Odoo, subcontracting feature can be initiated via going to manufacturing settings.


Go to Manufacturing > Configuration > Settings and activate Subcontracting feature under Operations menu.

Next create a Bill of Material. For that go to Manufacturing > Master Data > Bill of Materials

Upon clicking the CREATE button, you can create new BOM. Later list the components that will be used by the subcontractor for manufacturing the subcontracted finished product.

Specify BoM type as Subcontracting.

Upon clicking the BOM type as Subcontracting, one can see a new field adjacent to the BOM type. Here you can define the subcontractors.

If the subcontractor field is kept empty, any subcontractor can access the BoM. However, upon defining names, the BoM will be only accessible for those subcontractors.

Receive or buy a subcontracted product

Under Odoo, one can either buy the subcontracted product from your subcontractor or directly receive the subcontracted product.

Buying subcontracted product from subcontractor

For that go to Odoo Apps> Purchase Module. Create a new purchase order.

The vendor must be a subcontractor and the unit price should be the cost you are paying to the subcontractor for subcontracting the product.

Upon validating the purchase order, there generates a receipt automatically.

Upon receiving product, validate the receipt.

Stock moves get created:
  • For components

Subcontracting-> Production

  • For subcontracted product

Production -> Subcontracting

Subcontracting -> Stock

Subcontracting Location is the place at subcontractor’s warehouse where products are stocked. An internal location, therefore components sent to the subcontractor are still valued in stock.

To receive the subcontracted product, create the receipt manually with a partner of type subcontractor defined on it.

Resupply the subcontractor with the components

In Odoo, there exists 3 ways to manage resupply of your subcontractor:

  • Manually: Where you create a delivery order defining subcontractor as the partner, defining components to deliver.
  • With reordering rules: Ensures subcontractors are supplied with sufficient components. When reordering rule is triggered, a delivery order is created automatically for the product.

On order: Delivering components to your subcontractors each time you order a subcontracted product. To initiate the action, tick the route Resupply Subcontractor on Order on the wanted components.



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